Apple valuation tops $3trn

1 min read

With the news that Apple has become the first company to hit a market capitalisation of $3trn, that’s more than the value of the entire UK stock exchange, it appears that Tim Cook’s leadership has defied the many critics that questioned his appointment.

Speaking to the FT Ben Wood, chief analyst at CCS Insight, said that Cook was originally seen as a safe and conservative choice to follow on from the charismatic leadership of Steve Jobs but what he’s managed to deliver is, “nothing short of astonishing. He has made the iPhone franchise the most lucrative item of consumer electronics in history.”

But is the valuation a true reflection of where the company is or are we witnessing a bubble? Well, for many analysts while the company’s stock has risen by 500 per cent over the past five years many remain extremely bullish about it prospects – pointing to its move to a high margin service business and the prospect of the company moving into the automotive sector.

While Apple may be the first tech company to hit the $3trn milestone don't be surprised to see Tesla, Amazon, Alphabet and Microsoft, who are all valued at between $1-2.5trn, joining this exclusive club.